Falling outside and proper detection

[StoneLaughter]

OK, we all know that it's better for contracts to fall outside IR35 so that the tax-efficiency of your contracting business stays optimal. However; on a practical day-to-day front, how does one go about ensuring that?

For instance, do you run every single contract you're offered past your tax advisers/accountant/lawyer to make sure there's nothing in there which is a bit scary, IR35-wise? Do you develop a feel for what the Tax Office would be looking for in the contract and learn to spot the danger clauses/terms? Are there online resources which give an idea of the danger areas in clean, simple English?

Thanks in advance.

[Bagpuss]

Use the force

[The Lone Gunman]

Malvolio will probably pitch in with this one.

First and foremost you should take the time to learn about IR35 yourself. Relying on others is dangerous though some experts can be trusted.
You should consider joining the PCG and reading their user advice. You should also consider protection packages as offered by the PCG and Shout99.

There have been a number of cases and the more there are the more we learn. The IR is winning less than 5% of these cases and giving us clues how to protect our status all the time.
What is clear is that there is no "silver bullet", it is more a combination of factors, some carrying more weight than others.
I am by no means an expert so please dont take my word for any of this.
The most important thing is that you are trying to be in business as opposed to being a part time employee. This is difficult to achieve as our business tends to look like an employee.
Some of the major pointers to IR35 status have been picked up in a number of cases.
1. Client control. Show that although the client decides what work you will do, he has no control of how you will do it. Better if he has no control of where or when (apart from a dealine) you will do it.
Also make sure what work your client can ask you to do is limited to your business model.
2. MOO. Mutuality Of Obligation. The only mutual obligation is that you will do the agreed work and the client will pay you for said work. You are not obliged to turn up and they are not obliged to offer work if you do. Taking days off can be a pointer here.
3. Substitution. If you personally don't have to turn up and do the work then they regard this as a good pointer, but I could argue it the other way so they will one day.